Oil Price - Jump Prices

[Transmitter 0]

Fair point, but there is a catch....

If the base price changes then the end price changes too, so since the base price changed dramatically my assumption was that it should change as well for the consumer and that's where I opened a thread on dropzone.com to ask about it.

By the way sinking fuel prices mean also sinking shipping/delivering costs.

Cheers

[jonstark 8]

Fuel costs are a small portion of the actual costs of operating a DZ.
Profit margins and jump numbers for established DZs have taken several hits in recent years with increased competition by tandem mills, seasonal DZs popping up all over the USA, Groupon discounts, etc.

There have been several DZs to discount their jump ticket prices but it usually doesn't last for long due to the above mentioned margin slimming.

Consider a few simple examples of a the actual costs to operate jump aircraft... Outright price for an overhauled PT6-27 is $250,000. For a Cessna it ranges from $30-50,000. Hot section inspections due each 1500 hours can cost in excess of $60,000 per engine and a fairly busy DZ can fly 1000hrs a year. Changing an Otter tire can cost $400. Insurance is around $20,000 per year for a Twin Otter. Land lease, employee, utilities, facility maintenance, etc can cost a mid sized DZ $1000 per DAY whether jumping or not.

ANY DZ making a little profit in the current climate is well served to put it aside for a rainy day.

[DBCOOPER 5]

100LL prices in my area

Replying to: Re: Stall On Jump Run Emergency Procedure? by billvon

If the plane is unrecoverable then exiting is a very very good idea.

[DBCOOPER 5]

JetA

Replying to: Re: Stall On Jump Run Emergency Procedure? by billvon

If the plane is unrecoverable then exiting is a very very good idea.

[dpreguy 14]

..."if the base price changes the end price will change"?....possibly in a perfect world, and
logical, and don't we wish; but not necessarily true, as the local distributor will charge to make a profit.

Asked the DZ 'almost manager' today. She has been there a long time supervising stuff, she knows 100 LL "hasn't gone down at all". She didn't know about Jet A price.

Your assumption that delivery prices will fall if the fuel price falls is completely unfounded, as the local company will charge what ever they want to deliver.

I'm not saying there has been no change. Just asking you to do your homework before you indict DZ owners of raking in unwarranted profits based upon your assumptions about what they pay/paid for fuel, then and now. Clicking around on a keyboard, applying your logic and guessing amounts to accusation by innuendo.

[Dopamine_Junkie 0]

Transmitter

Fair point, but there is a catch....

If the base price changes then the end price changes too, so since the base price changed dramatically my assumption was that it should change as well for the consumer and that's where I opened a thread on dropzone.com to ask about it.

By the way sinking fuel prices mean also sinking shipping/delivering costs.

Cheers

Ummm no. When you are an airline buying millions of gallons pumped right to your planes you see significant cost savings and lower fares result. Fuel delivery costs do not go down for small airports or DZ's that run their own little strip. I have no idea where you got that idea. Owning a plane is not cheap and each plane you own can only do so many jump runs a day even flying aggressively. Safety still matters. In off months the best DZ around here is only open Fri Sat Sun. Don't think they will be dropping prices.